NPD: 42 Million U.S. Homes Are Connecting to the Internet through TVs or Attached Content Devices

PORT WASHINGTON, NEW YORK, MAY 15, 2014 – During the first quarter (Q1) of 2014 there were 42 million U.S. households with a TV connected to the Internet, either via a video game console, Blu-ray disc player, streaming media player or the TV itself. According to the NPD Connected Intelligence Connected Home Report, between Q1 2013 and Q1 2014 the number of homes with a TV connected to the Internet grew by 6 million. The vast majority of this increase was driven by growth in the number of homes with Connected TVs and streaming media players.

For the first time, there are now more U.S. households with streaming media players than Blu-ray disc players connected to the Internet. As a result, the streaming media player platform now reaches a larger digital audience than the app-related content on Blu-ray disc players.

“Consumers want devices that can deliver high-quality content to their TVs,” said John Buffone, executive director, Connected Intelligence. “The increase in Connected TV and streaming media player penetration is proof that consumers are investing in solutions that can provide app-related content in the simplest, most effective way.”

Having the ability to connect these devices wirelessly is the most important feature for a consumer. According to the Connected Intelligence Connected TV User Experience Report , 67 percent of Connected TV users said having a device that can connect with Wi-Fi influenced their decision regarding the device they preferred to use for apps on TV. Ease of use features, whether device-centric or related to searching for content, were four of the top 10 features highlighted by consumers. These features include an easy to use remote, easy to use home screen, the ease of finding an app or channel the viewer is looking for, and the ease of finding new apps.

Top 10 Features That Impact
Device Preferred for Apps on a TV

“In some ways the TV viewing experience consumers want has not changed, although how they receive it continues to, and an app experience is no different,” said Buffone. “Consumers want easy to find, entertaining programming and a quality picture that does not buffer. While device manufacturers cannot solve all of the challenges inherent in Internet content delivery, they can ensure viewers have an easy to use remote and home screen as well as facilitate content discovery.”

To learn more about consumer satisfaction with connected TVs read the blog Buffering Killed the Video Star.

Methodology

Connected Home Report

More than 5,000 U.S. consumers, age 18 and older were surveyed through the first quarter of 2014. The number of installed and internet connected devices includes those that deliver broadband applications and must actually be connected to the Internet.

Connected TV User Experience Report

In Q1 2014, more than 3,800 U.S. consumers, aged 18-years or older took part in this online survey which asked questions about their awareness, usage and interest in connected TV apps.

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci.
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